Rivian stock could crash another 45% from here: Barclays warns

By:
on Feb 12, 2024
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  • Barclays slashed his price target on Rivian to $9.0 on Monday.
  • Analyst Dan Levy explained why in a research note today.
  • Rivian stock is already down well over 20% year-to-date.

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Rivian Automotive Inc (NASDAQ: RIVN) is already down well over 20% year-to-date but a Barclays analyst warns it could continue to sink sharply over the next twelve months.

Rivian stock has downside to $9.0

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Dan Levy downgraded the electric vehicles company this morning to “equal weight” and slashed his price to $9.0 which suggests an alarming 45% downside from here.

The analyst is super dovish on Rivian stock primarily because he expects the broader slowdown in the EV space to make it harder for the Nasdaq-listed firm to turn positive in terms of margins and cash flow.

$RIVN is scheduled to report its financial results for the fourth quarter on February 21st. Consensus is for it to lose $1.67 a share versus $1.73 per share a year ago.

Rivian deliveries were down 10% in Q4

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A continued need for raising new capital particularly “in preparation for the high volume R2 in 2026” also factored into Dan Levy’s bearish call on Rivian stock today.

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Weaker demand is a threat to volume outlook and pricing – which suggests $RIVN will “miss its 2024 target of reaching gross margin profitability”, as per his research note to clients on Monday.

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In January, Rivian Automotive Inc said it delivered 13,972 vehicles in total in the fourth quarter – down some 10% sequentially but roughly in line with 14,000 deliveries that analysts had forecast.

Note that Barclays view is in contrast with our market analyst Crispus Nyaga who recently added the Irvine-headquartered firm to his list of top EV stocks to buy on the dip.  

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